Running a storage site: today’s tough reality

With increasing operating costs, business rates and tough occupancy figures, protecting business cash-flow by managing overdue invoices efficiently and professionally has become all the more important, says Redwood Collections.

Storage companies are struggling to keep afloat as every day running costs continue to climb, from insurance and rent to the basic overheads that keep a site open. According to the Self Storage Association UK, 475 new sites opened in the past year, creating even more competition and pushing operators to invest in new technology to stay noticeable.

Why it’s getting harder

Energy remains one of the biggest overheads for storage companies, with business electricity prices rising by more than 90% between 2021 and 2023. For storage sites, this feeds straight into higher costs for lighting, CCTV, access systems and climate-controlled units – all essentials that can’t simply be switched off. Higher business rates are adding extra weight on operating costs, and staffing costs have risen too, with the industry now averaging 2.6 employees per store, down from 3.2 in 2022.

Easy Access Self Storage has seen a clear change in customer behaviour, noting higher mortgage rates have slowed residential moves and contributed to a 10% drop in demand. A large share of the sector’s enquiries come from people relocating, so when the housing market cools, operators naturally see fewer move-ins and longer void periods. Lower occupancy results in less monthly income while fixed costs stay exactly the same.

Keeping the doors open

Figures from Credit Safe show that 196 UK storage companies entered insolvency in 2025. Storage firms need to ensure their collection processes are solid enough to avoid unnecessary extra costs. The storage firms that avoid extra collections costs tend to have a few things in common: they keep a clear record of each unit, including what was agreed in the licence and access activity; they invoice in stages on bigger jobs or long-term storage to stop balances building up; billing disciplines remain the same despite a client being long-standing; and if internal chasing isn’t getting results, they pass the account to a trusted debt collection agency.

Unit occupied, balance outstanding

Nearly 46% of invoices in the storage sector are paid late, showing how normalised delays have become. Leaving overdue balances unaddressed for too long can be costly – the chances of recovery naturally decline over time. Internal data from Redwood shows that 52% of cases are recovered within the first 60 days. After 190 days, the recovery rate drops to 29%. Referring an overdue payment earlier may see better results.

A recent case involving one of Redwood’s long-established storage clients demonstrates how effective strong paperwork and early referral can be. The account was passed over shortly after it fell into arrears. The principal balance was paid quickly but the debtor disputed the additional charges. Once evidence was provided to show that payment had not been made before their first letter was issued, the debtor cooperated and the full balance – including the disputed charges – was recovered within 8 days.

Tackling late payment in storage

Redwood Collections offers a straightforward way to deal with overdue accounts without adding upfront cost, working on a no-collection, no-commission basis, typically at 15%. Cases are handled through fair, clear communication, helping firms settle overdue invoices while protecting customer relationships. Services include access to credit-management support that strengthens invoicing processes and improves visibility of future risk, as well as international recovery routes where cross-border payment issues arise.

Read the story in the Magazine.